Islamic Debt Solutions

the huge debt that currently burdens many people has arisen from loans that have charged interest and have not shared risk between the lender and the borrower and have, therefore, contravened the two most fundamental principles of islamic finance. the core belief in islamic finance is that money should not in itself be an earning asset; therefore islam prohibits any and all forms of interest. there are several passages in the qur’an which clearly condemn the practice of interest (referred to in arabic as riba): “those who devour interest will not stand except as he stands who has been driven to madness by the touch of satan … allah has permitted trade and forbidden interest … allah will deprive interest of all blessing” (2:275-6) “o ye who believe! fear allah, and give up what remains of your demand for interest, if you are indeed believers. if you do not, take notice of war from allah and his messenger. but if ye turn back, ye shall have your capital sums: deal not unjustly and ye sha